Which Indian State Earns the Most from Road Tax? | SpotGenie Facts

In India, road tax is a critical source of revenue for state governments. Whether you're registering a two-wheeler in Bengaluru or a commercial truck in Delhi, the road tax you pay fuels infrastructure development and maintenance. But here's the question: Which Indian state collects the most road tax?

📄 The Answer: Maharashtra

According to official Ministry of Road Transport and Highways (MoRTH) data for FY 2022–2023, Maharashtra tops the list of states with the highest road tax revenue, crossing ₹9,300 crore in collections.

🌎 Top 5 States by Road Tax Collection:

1. Maharashtra – ₹9,300+ crore
2. Tamil Nadu – ₹7,800 crore
3. Uttar Pradesh – ₹7,100 crore
4. Karnataka – ₹6,500 crore
5. Gujarat – ₹5,400 crore

📈 Why Maharashtra?

• Mumbai and Pune have high vehicle density, especially of luxury cars and commercial fleets.
• High registration charges and lifetime tax slabs bring in greater upfront revenue.
• Massive volumes of freight vehicles and inter-state carriers cross through.
• The state also sees major automotive sales, especially in urban zones.

🌐 Did You Know?

• Maharashtra’s road tax is calculated as a percentage of vehicle cost, often making it one of the most expensive states to register high-end vehicles.
• States like Karnataka and Tamil Nadu follow close behind due to strong commercial and urban transport activity.
• Several states (like Delhi, Kerala) offer partial or full tax exemption for EVs, affecting their total collections.

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